The Supreme Court Monday admitted a plea by two Sahara group companies challenging the Securities Appellate Tribunal’s order directing them to refund Rs.17,400 crore mopped up from 2.3 crore investors and ordered the continuation of its interim stay on the tribunal’s direction.
The apex court bench of Chief Justice S.H. Kapadia, Justice A.K. Patnaik and Justice Swatanter Kumar admitted the plea after it was told that an affidavit had been filed by the two companies giving details of their financial status and assuring that the interest of the 2.3 crore investors would be protected.
Two Sahara group companies – Sahara India Real Estate Corp and Sahara Housing Investment Corp – filed the affidavit on apex court’s direction of Nov 28, 2011.
The court asked the two companies to file an affidavit stating their net worth, details of assets and liabilities and the manner in which they had deployed the investors’ money.
The two firms collected Rs.19,400 crore from 2.3 crore investors through optional fully convertible debentures. The apex court was told during the last hearing that out of the total, Rs.2,000 crore had already been invested.
The Sahara group challenged the SAT order of Oct 18, 2011, by which it directed the two companies to refund Rs.19,400 crore within six weeks with 15 percent interest.
During the last hearing, the apex court also issued notice to both the central government and the securities and exchange regulator on the plea of the Sahara companies.